SunPower (SPWR -1.02%) announced this week that it is building a 50 MW power plant that will sell power to Xcel Energy (XEL 0.11%), a project that shouldn't be overlooked by investors. SunPower recently announced a YieldCo/HoldCo strategy that has the company building projects on its balance sheet to generate more value for shareholders. Thus far, the plan is to hold this project on the balance sheet to retain value.
Last quarter, SunPower's management predicted that a utility-scale project like this one would generate around $2 of retained value per watt, or about $100 million from this one project alone.
Solar specialist Travis Hoium covers more on this project and what to look for at SunPower in the video below.
